HANO'S AGENDA, MAY 2011

President's message:

Nonprofits still monitoring bills
challenging tax exemptions

Governor Abercrombie has announced his administration will partner with four nonprofits to address Hawaii's homeless problem statewide, a great example of government-nonprofit partnership to meet community goals. Nonprofits can reach this target population and provide services efficiently for and with government. We look forward to future collaborations.

As I write, April is ending and the Legislature is winding down, taking big steps to finalize the state budget. So far, nonprofits have not lost their general excise tax exemptions, except on revenue from exhibits and displays at conferences and conventions -- a bitter pill that we will have to swallow in this austere fiscal environment. HANO is still participating to make sure we don't lose other tax exemptions at the 11th hour.

The conference committee is still working on SB 778. It would take the sting out of Act 155, passed in 2010, which made board members and key staff personally liable for paying general excise taxes that a nonprofit willfully neglects and could revoke state tax-exempt status of nonprofits failing to file the annual G-49 reconciliation form.

Honolulu City Council's Bills 25 (CD1), 26 and 27 each propose higher taxes for nonprofits that own real property. Final action has yet to be scheduled as city officials wait to see if the state will raid the counties' share of the transient accommodations tax. If the state does, the city will take aggressive action to make up the shortfall. Stay tuned.

Meanwhile, our National Council of Nonprofits has provided an update on the federal budget.

As May begins, I'll be in Boston to represent Hawaii on Nonprofit Quarterly's Editorial Advisory Board, urging NPQ to focus its online and magazine publications on subjects that matter most to Hawaii nonprofits in the coming year.

Enjoy this month's newsletter, chock full of information on our diverse sector.

Mahalo,

Lisa Maruyama
HANO president & CEO

News for Nonprofits

The Economy

Advocacy & Public Policy

Announcements